Pricing policy under Double Market Power: Madagascar and the International Vanilla Market

Jaime Melo de, Marcelo Olarreaga and Wendy Takacs
Authors registered in the RePEc Author Service: Jaime de Melo

No 199617, Working Papers from CERDI

Abstract: This paper uses a price leadership model of the international vanilla market to study the welfare consequences of alternative pricing policies for Madagascar, the leader in the vanilla market, that also controls domestic production through a single-channel marketing system. Econometric estimates of the model are used for simulations of welfare and revenue gains and losses and internal redistribution of income from alternative pricing policies. The results indicate that Madagascar could have gained between 0.9 to 2.6 percent of GDP per year on average over the period 1981-91 by following optimal pricing policies, and that producers were overtaxed suggesting that political economy considerations played a role in the pricing decisions.

Pages: 20
Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published in Review of Development Economics, February 2000, pages 1-20
Published in Review of Development Economics

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Chapter: Pricing Policy Under Double Market Power: Madagascar and the International Vanilla Market (2015)
Journal Article: Pricing Policy Under Double Market Power: Madagascar and the International Vanilla Market (2000)
Working Paper: Pricing Policy Under Double Market Power: Madagascar and the International Vanilla Market (1996)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cdi:wpaper:22

Access Statistics for this paper

More papers in Working Papers from CERDI Contact information at EDIRC.
Bibliographic data for series maintained by Vincent Mazenod ().